LCCs invade Oz
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It’s no secret that AirAsia X will be next, with those packed A330-300s it just ordered. CAPA’s Derek Sadubin said, “It is the start of a new era in international outbound travel for Australia with fares that will be consistently low.” FAX’ sister, AirAsia, currently connects to 45 SEAsian cities.
On Friday, Singapore’s Tiger Airways jumped into the foray, targeting Australia’s domestic market with its new A320 fleet. HK’s Oasis and India’s Jet Airways have also signalled interest.
Most predict Air Deccan (China), Adam Air (Indonesia), Spice Jet (India), Hong Kong Airways and Manadla Airlines (Indonesia) will follow suit.
Sadubin said, “(This) means more pressure on the incumbent carriers.” like Qantas’ JetStar and big carriers, possibly forcing them to rely more on alliances for long-haul flights, though Asian LCCs are also eyeing those routes. Will the little guys look into their own alliance?
JetStar doesn’t appear concerned. It has a fleet to backup its leading position, and its 787 deliveries begin next year. FAX is expected to win on price, though it is over a year behind on flight structure.
Then yesterday, Virgin Group founder Richard Branson added a new twist. He boasted to UK newspapers Virgin has acquired a 20% stake in FAX and will run the flights to Oz. Fasten your seatbelts.
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